Innovana Thinklabs NSE SME IPO review (May apply)

Review By Dilip Davda on Nov 24, 2017

Innovana Thinklabs Ltd. (ITL) (earlier known as PCWARK Software Ltd.) is engaged in software and application development business which directly provide services to retail user. Company basically designs, develops and maintains software systems and solutions, create new applications and enhance
the functionality of customers’ existing software products. Its product portfolio consists of application and software such as Ad blocker, disk cleanup, space reviver, file opener and privacy protector etc. ITL has developed number of products and these products have registered their presence and popularity in 13 different languages and over 126 countries.

ITL’s product range includes Software and application for Windows such as Ad-Blocker, Advanced Password Manager, Driver Update etc., Software and application for Mac such as Mac Space Reviver, Mac File Opener, Disk Cleanup Pro, Duplicates Cleaner etc., Software and application for IOS such as Free up Space, Compress Photos, Resize Photos, Duplicate Photos Cleaner etc. and Software and application for Android such as Free Up space, Duplicate Photos Cleaner, Resize Photos, Free Cleaner for Android etc. Additionally Company also develops application and software such as Advance Password Manager, Advance Identity Protector, Malware Protection, Disk Speedup, Systems Boost, Web Protection etc.

To part finance its capital expenditure, working capital and general corpus fund needs, ITL is coming out with a maiden IPO of 1100000 equity shares of Rs. 10 each at a fixed price of Rs. 70 per share to mobilize Rs. 7.70 crore. Issue opens for subscription on 29.11.17 and will close on 04.12.17. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Swastika Investmart Ltd. and Skyline Financial Services Pvt. Ltd. is the registrar to the issue. Average costs of acquisition of shares by promoters are at Rs. 1.25 and Rs. 5.92 per share. Issue constitutes26.83% of post issue paid up capital of the company. From inception till 2015, it issued equity shares at par. It has also issued bonus shares in the ratio of 7 shares for every 1 share held in July 2017 and has issued fresh equity (1400000 shares) at a price of Rs. 11 per share. Post issue its current paid up capital of Rs. 3.00 crore will stand enhanced to Rs. 4.10 crore.

On performance front, ITL has reported turnover/net profits of Rs.6.64 cr. / Rs. 0.59 cr. (FY16) and Rs. 15.77 cr. / Rs. 0.97 cr. (FY17). For Q1 of current fiscal, it has posted net profit of Rs. 0.28 crore on a turnover of Rs.5.39 crore. It has reported an average EPS of Rs. 5.28 and average RoNW of 61.67% on an equity base of Rs. 0.20 crore. Issue is priced at a P/BV of 3.03 on the basis of post issue NAV. If we annualize latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 25 plus against industry average of 18. Thus issue is priced aggressively. As per offer documents its peers are trading at a P/E ranging from 13 to 17.

On merchant banker’s front, this is the 8th mandate from its stable. Last 7 IPOs have opened with a premium ranging from 4.5% to 20% on the offer price on the day of listings.

Conclusion: Cash surplus investors may consider moderate investment for long term. (High Risk – Low yield).


Conclusion / Investment Strategy

Cash surplus investors may consider moderate investment for long term. (High Risk – Low yield).

Review By Dilip Davda on Nov 24, 2017

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the past, SME IPOs drew the attention of investors across the board. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at own risk. The above information is based on information available as on date coupled with market perceptions. The Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

Innovana Thinklabs IPO FAQs

  1. 1. Why Innovana Thinklabs IPO?

    The initial public offer (IPO) of Innovana Thinklabs Limited offers an early investment opportunity in Innovana Thinklabs Limited. A stock market investor can buy Innovana Thinklabs IPO shares by applying in IPO before Innovana Thinklabs Limited shares get listed at the stock exchanges. An investor could invest in Innovana Thinklabs IPO for short term listing gain or a long term.

  2. 2. How is Innovana Thinklabs IPO?

    Read the Innovana Thinklabs IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Innovana Thinklabs IPO what should investors do?

    Innovana Thinklabs IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Innovana Thinklabs IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is Innovana Thinklabs IPO good?

    Our recommendation for Innovana Thinklabs IPO is to subscribe for long term.

  5. 5. Is Innovana Thinklabs IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Innovana Thinklabs IPO.

  6. 6. When will Innovana Thinklabs IPO allotment status?

    The Innovana Thinklabs IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Innovana Thinklabs IPO allotment status to check.

  7. 7. When will Innovana Thinklabs IPO list?

    The Innovana Thinklabs IPO will list on Tuesday, December 12, 2017, at NSE SME.








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